Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Advice about term offered for restaurant lease

  • 29-11-2011 10:56AM
    #1
    garrettf
    Closed Accounts Posts: 12 ✭


    Hello all,

    Just wondering if I could solicit some advice from you folks. I am negotiating the lease on a restaurant/cafe facility.

    The landlord is offering a lease of 10 years duration (break clauses for the tenant after 2.5 years and 5 years). I have to waiver tenancy rights (which normally accrue after 4 yrs 9 months and which would have allowed me the right to extend the lease beyond 10 years).

    My concerns is that 10 years does not seem reasonable - a restaurant is not like a shop - it involves considerable more investment and relies on reputation - and the margins are quite tight to say the least. Hence, 10 years is too short a term to allow you to earn back on your investment.

    Hence, to have the business cease potentially after 10 years (if i am lucky enough to survive that long in the first place) seems like it is too short a timeframe. Obviously, it would also restrict my ability to sell it on as a going concern after say 5 years as there would only be another 5 on the lease, which would be unattractive for any potential buyer.

    Any thoughts on what a decent tenancy would be or angles how I should best consider this? I doubt I will get 25 years but is 15 enough or 20? Any other relevant thoughts - all responses greatly appreciated!

    Thanks
    Tagged:


Advertisement